Appraisal myths & facts
By law, an appraiser is required to be state-licensed to perform appraisals for federally-backed purchases. Also by law, you are allowed to demand a copy of the finished appraisal report from your lending agency. Contact us if you have any questions about the appraisal procedure.
Myth: Market value will always be the same as the assessed value of the property.
Fact: This usually isn't true; most states do support the concept that the assessed value is the same as market value, but not always. Sometimes when interior remodeling has been done and the assessor is unaware of the improvement or other houses in the Metairie have not been reassessed for quite a while, it may vary wildly.
Myth: The buyer or the seller will have some pull in the value of the house depending upon for whom the appraiser is working.
Fact: The appraised value of the home does not affect the payment of the appraiser; as a result, the appraiser has no vested interest in the value of the property. What this means is he will render task with impartiality and independence regardless for whom the appraisal is conducted.
Myth: Any time market value is found, it should equal the replacement cost of the property.
Fact: Without any influence from any different parties to buy or sell, market value is what a willing buyer would pay an interested seller for a particular house. The dollar amount necessary to rebuild a home is what shows the replacement cost.
Myth: There are specific methods that appraisers use to determine the value of a home, such as the price per square foot.
Fact: An appraisal report is a collection of data based on the property's size, location, proximity to certain facilities, the condition of the property and the value of recent comparable sales. You can rely on Crescent Appraisal Group, Inc.'s staff to be forthright in assessing this data.
Myth: In a robust economy - when the prices of houses in a given county are reported to be increasing by a particular percentage - the worth of individual houses in the area can be expected to increase by that same percentage.
Fact: Any worth at which an appraiser concludes in regards to a certain home is always personalized, based on certain factors found from the data of comparable houses and other specifications within the house itself. It makes no difference if the economy is robust or poor.
Have other questions about appraisers, appraising or real estate in Jefferson County or Metairie, LA?Contact our professional staff
Myth: Just looking at what the home looks like on the outside gives an excellent idea of its worth.
Fact: To conclude an accurate price beyond all doubt, an appraiser must assess the home on a variety of factors based on location, condition, improvements, amenities, and market trends. There's no real way to get all of this data from simply inspecting the home from the outside.
Myth: Since the consumer is the one who puts up the money to pay for the appraisal report when applying for a loan for any real estate transaction, by law the appraisal is theirs.
Fact: Legally, the report is owned by the lender unless the lender relinquishes their interest in the document. However, home buyers must be provided with a copy of the report upon written request, under the Equal Credit Opportunity Act.
Myth: There's no reason for home buyers to even worry about what the appraisal contains so long as their lending agency is satisfied.
Fact: A consumer should definitely look through their report; there might be some questions or some concerns with the accuracy of the inspection that need to be addressed. Remember, this is probably the most expensive and important investment a consumer will ever make. Also, the appraisal makes an invaluable record for future reference, comprised of useful and often-revealing information - including, but not limited to, the legal and physical description of the property, square footage measurements, list of comparable properties in the neighborhood, neighborhood description and a narrative of current real-estate activity and/or market trends in the proximity.
Myth: Appraisers are hired only to estimate real estate property values in home sales involving mortgage-lending transactions.
Fact: Hiring an appraiser can fulfill a variety of needs depending on the designations and certifications of the appraiser involved; appraisers can provide a multitude of different services, including benefit/cost analysis, tax assessment, legal dispute resolution, and even estate planning.
Myth: An appraisal is no different than a home inspection.
Fact: Appraisal reports have almost nothing in common with a home inspection report. The appraiser forms an opinion of value in the appraisal process and resulting document. A home inspector assesses the condition of the home and its main components and reports their findings.